Whitacre is a native of Ennis, Texas, a small town 40 miles south of Dallas.
When a New GM emerges after the bankruptcy sale of General Motors Corporation early next autumn, Edward E. Whitacre, Jr., former chairman and CEO of AT&T Inc., will become chairman, GM’s interim Chairman Kent Kresa announced today. Kresa will continue to serve as interim chairman until the rollout of the new company.
“I am honored to be able to serve GM at this critical juncture and take part in its reinvention,” said Whitacre.
Whitacre and Kresa, along with current board members Philip A. Laskawy, Kathryn V. Marinello, Erroll B. Davis, Jr., E. Neville Isdell and President and Chief Executive Officer Frederick A. Henderson, will serve as the core of the New GM board, providing management oversight and a continuing commitment to transparency and “world-class standards” of corporate governance.
The New York Stock Exchange notified the Security and Exchange Commission this morning that it is delisting GM securities at the opening of business on June 19, 2009. Trading was halted on May 29th.
In and interview with an ExxonMobil internal publication when he joined its board last year, Whitacre said he was born and raised in a railroad town, where his father, who never completed high school, worked as an engineer.
“I believe I understand what makes big organizations tick,” Whitacre said at the time, and described ExxonMobil as a “very disciplined company.”
His focus is consistent with what GM senior execs have described at their goal for the New GM.
“They’re engineering-oriented and very careful about capital investment, Whitacre said of the oil company. “They have a very thoughtful planning process, and they execute their plans well.”
Just what GM needs.
The six other members of the current board “will most likely retire” no later than the approval of the sale of GM assets to the new entity. A selection process is currently underway with U.S. Treasury Department assistance for four more directors to serve on the board of the New GM.
In addition, the Canadian government and the new UAW Voluntary Employee Beneficiary Association (VEBA) will each nominate one director, bringing the total number of New GM directors to 13, which is roughly consistent current governance practices.
Whitacre, 67, was chairman and CEO of AT&T Inc. and its predecessor companies from 1990 to 2007. During his tenure, which began with Southwestern Bell, Whitacre led the company through a series of mergers and acquisitions–including that of AT&T in 2005–to create the nation’s largest provider of local, long distance and wireless services. He serves on the boards of ExxonMobil Corporation and the Burlington Northern Santa Fe Corporation. He holds a degree in industrial engineering from Texas Technological University.
“The appointment of Ed Whitacre as chairman represents a very auspicious beginning for the New GM,” said Kresa. “We look forward to working with him to complete the reinvention of GM and maximize the enormous potential of this new enterprise.”